TORONTO, ONTARIO – December 7, 2016 – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) announces certain financial and operating results from the three and six month period ended November 30, 2016. During the second quarter of fiscal 2017, the Company sold 4,388 ounces of gold and generated $7,411,279 in revenue at an average sales price of $1,689 per ounce. Anaconda also earned approximately $400,000 in revenue from the sale of its waste rock from the recently announced aggregates project. The Company expects to file its full financial statements by January 13, 2016. All dollar amounts are in Canadian dollars unless otherwise noted.

President and CEO, Dustin Angelo, stated, “During the second quarter of fiscal 2017, the Pine Cove Mill set a new throughput record running at an average of 1,302 tonnes per operating day, which we see as the new normal. The entire team did a great job rebounding from the first quarter of fiscal 2017, delivering a strong quarter operationally. In relation to the first quarter, tonnes processed and grade increased 9% and 18%, respectively, and gold sales volume was up approximately 50%. We expect cash cost per ounce sold for the second quarter to be lower than the first quarter of fiscal 2017. Also during the quarter, we earned our first $400,000 of revenue from our aggregates project. The mining operation has benefited from the aggregates project because it reduces hauling distance, lowers operating costs and mitigates asset retirement obligations, while generating additional cash flow.”

FY Q2 2017 Operations Overview:
The Pine Cove Mill operated for 83 days during the second quarter of fiscal 2017 at an availability rate of 91%, a three-percentage point increase over the availability in the second quarter of fiscal 2016. The mill achieved an average run rate of 1,302 tonnes per operating day compared to 1,181 tonnes per operating day in the second quarter of fiscal 2016, a 10% increase. The Pine Cove Mill processed 108,045 dry tonnes of ore during the quarter compared to 95,629 dry tonnes of ore in the similar period of fiscal 2016, a 13% increase. Overall mill recovery was 85% compared to 87% in second quarter fiscal 2016. Average feed grade during the quarter was 1.38 grams per tonne (“gpt”), lower than the second quarter of fiscal 2016 but 18% higher than the first quarter of fiscal 2017 and in line with expectations for the remainder of the year.

The mining operation at the Point Rousse Project operated for 74 days in the second quarter in the Pine Cove Pit. Total production was 129,078 tonnes of ore and 595,668 tonnes of waste for a strip ratio of 4.6 : 1, waste to ore. Total tonnes mined at the Pine Cove Pit was 14% higher compared to the second quarter of fiscal 2016. The increased levels of production through the second quarter of fiscal 2017 resulted in completion of rock placement of Phase 1 of Tailings Storage Facility II. Tonnes mined and strip ratio decreased, relative to the first quarter of fiscal 2017, 27% and 44% respectively, and are expected to further reduce during the second half of fiscal 2017.

The following table summarizes the key operating statistics for the three and six months ended November 30, 2016 and November 30, 2015:

OPERATING STATISTICS:

For the three months ended

For the six months ended

November 30 2016

November 30 2015

November 30 2016

November 30 2015

Mill

Operating days/td>

83/td>

81/td>

171/td>

167/td>

Availability

91%

88%

93%

91%

Dry tonnes processed

108,045

95,629

207,486

192,161

Tonnes per 24-hour period

1,302

1,181

1,213

1,151

Grade (grams per tonne)

1.38

1.66

1.28

1.64

Overall mill recovery

85%

87%

85%

87%

Gold sales volume (troy oz.)

4,388

4,605

7,307

8,561

Mine – Total

Operating days

74

73

157

151

Ore production (tonnes)

129,078

117,133

237,383

221,411

Waste production (tonnes)

595,668

559,961

1,485,788

1,202,789

Total production (tonnes)

724,746

667,094

1,723,171

1,424,200

Waste: Ore ratio

4.6

4.8

6.3

5.4

Mine – Pine Cove Pit

Operating days

74

64

157

142

Ore production (tonnes)

129,078

105,947

237,383

210,225

Waste production (tonnes)

595,668

529,718

1,485,788

1,172,546

Total production (tonnes)

724,746

635,665

1,723,171

1,382,771

Waste: Ore ratio

4.6

5.0

6.3

5.6

Mine – Stog’er Tight

Operating days

–

9

–

9

Ore production (tonnes)

–

11,186

–

11,186

Waste production (tonnes)

–

30,243

–

30,243

Total production (tonnes)

–

41,429

–

41,429

Waste: Ore ratio

–

2.7

–

2.7

NOTE: Operating statistics exclude changes in in-circuit inventory.

ABOUT ANACONDA
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and two exploration/development projects called the Viking and Great Northern Projects in Newfoundland.

The Point Rousse Project is approximately 6,300 hectares of property on the Ming’s Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to nearly 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 km of the Pine Cove Mill. A second property called the Tilt Cove Property, consisting of 350 hectares, is located approximately 60 kilometres by road from the Pine Cove Mill but is also within the Baie Verte Mining District and underlain by similar geology to the Point Rousse Project.

Anaconda also controls the Viking and Great Northern Projects, which have approximately 6,225 and 6,375 hectares of property (respectively) in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The Viking Project contains the Thor Deposit and other gold prospects and showings and the Great Northern Project includes numerous prospects and showings within a similar geological setting as the Viking Project. The Company’s plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of nearly 16,000 ounces.

As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.

FORWARD-LOOKING STATEMENTSThis document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “may,” “estimates,” “expects,” “indicates,” “targeting,” “potential” and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.